On Thursday, H.C. Wainwright maintained a positive outlook on shares of Avino Silver & Gold (NYSE:ASM), reaffirming a Buy rating and a $1.50 price target for the company's stock. Avino Silver & Gold recently publicized its second-quarter production figures for 2024, showing a mixed performance in its mining operations.
The company reported a slight year-over-year increase in silver equivalent ounces (SEOs) production, achieving 616,571 SEOs, marking a 5% improvement compared to the same period last year. However, this represents a 2% decrease from the previous quarter. Silver production notably rose by 26% year-over-year to 292,946 ounces and saw a 17% increase from the prior quarter.
Gold output remained steady year-over-year with 1,514 ounces produced, though it fell by 15% from the last quarter. Copper production experienced a decline, with 1.3 million pounds produced, which is a 10% decrease year-over-year and a 3% drop from the previous quarter.
The report highlighted that a 10% year-over-year reduction in mill throughput to 140,934 tonnes was largely due to maintenance activities on a cone crusher, impacting the last two weeks of the quarter's production. Despite this, Avino saw improvements in metal grades across the board, with silver, gold, and copper grades increasing by 42%, 9%, and 4% year-over-year, respectively.
Concluding remarks from H.C. Wainwright suggest confidence in Avino's ability to meet its annual production guidance of between 2.5 million and 2.8 million SEOs. The firm's analysis indicates that Avino Silver & Gold is poised for significant long-term growth, bolstered by persistent strength in metal prices. The reiterated price target and Buy rating reflect this optimistic assessment of the company's prospects.
In other recent news, Avino Silver & Gold reported strong financial results for the first quarter of 2024, with silver equivalent production of 629,000 ounces and revenues of $12.4 million. The company also announced a net income of $0.6 million.
Despite lower production levels in the second quarter, Roth/MKM maintained a Buy rating on the company's stock, citing higher silver and copper prices as a significant factor for the raised target from $1.25 to $1.60. The financial firm also lowered the discount rate applied to Avino Silver & Gold from 10% to 9%, reflecting confidence in the company's potential for growth.
In addition to these financial results, Avino has made significant progress on its La Preciosa project, a key aspect of its growth strategy. The company expects this project to positively impact Q2 results and is optimistic about securing a permit for it in 2024.
Avino's commitment to fiscal responsibility is demonstrated by its cost reduction measures, resulting in lower cash costs. The company's focus on Environmental, Social, and Governance (ESG) and Corporate Social Responsibility (CSR) initiatives reflects its dedication to sustainable operations. These recent developments indicate that Avino is on track to meet its annual production targets and is strategically positioned for growth.
InvestingPro Insights
In light of H.C. Wainwright's positive outlook on Avino Silver & Gold, it's worth noting some key InvestingPro insights that align with the firm's analysis. Avino's net income is expected to grow this year, and analysts are anticipating sales growth in the current year, which could contribute to the company's ability to meet its annual production guidance.
Moreover, the company's stock has experienced a strong return over the last three months, with a 39.55% price total return, underscoring the confidence expressed in the firm's growth potential.
From a financial standpoint, Avino is trading at a high earnings multiple, with a P/E Ratio (Adjusted) as of Q1 2024 at 63.1, signaling investors' high expectations of future earnings. The company's Price / Book as of Q1 2024 stands at 1.3, which may appeal to value-oriented investors. The Revenue Growth (Quarterly) for Q1 2024 at 26.14% further supports the notion of a robust sales trajectory.
For those interested in deeper analysis, there are additional InvestingPro Tips available for Avino Silver & Gold, which can be accessed at https://www.investing.com/pro/ASM. Readers looking to leverage this intelligence can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, gaining access to a comprehensive array of insights to inform their investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.